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S.F. finalizes $80 million sale of 30 Van Ness

San Francisco has agreed to sell Mid-Market site 30 Van Ness Ave. to developer Related California for $80 million, with the proceeds of the sale slated to be used to build a separate mixed-use development at the Goodwill site at 1500 Mission St.

The new 30 Van Ness project will add 600 new units in area with 4,000 already planned, as midtown continues its building boom. The Goodwill site project will have 500 residential units and city offices on 450,000 square feet of planning space.

The deal is the finalization of a convoluted sale closely followed by the Business Times this year.

San Francisco’s Department of Real Estate had initially been in talks with Carmel Partners to buy the five-story, city office-filled 30 Van Ness. But when those negotiations crumbled, the city turned to Related, who quickly put together a plan this fall.

On Nov. 6, San Francisco’s real estate director, John Updike, declined to name a developer to the Business Times but said “we're very close to moving a final agreement to the Board of Supes.”

Related California’s potential with 30 Van Ness puts an interesting chess board in front of the city and the developer.

San Francisco officials are pushing to maximize affordable housing in the area, which can be a tricky balancing act on public sites when the city also needs to make sure it has enough money to build updated offices for the Planning, Building and Public Works Departments.

Working with one developer on both sides of that stretch of Van Ness opens up more possibilities for increased affordable housing and height, especially if Related California can gobble up private parcels near 30 Van Ness. If they assemble two sites next to 30 Van Ness, they can propose a much bigger and more valuable project, adding to the city's returns.

The development may get taller because of the Planning Department’s rezoning of the dozen blocks around the intersection of Market Street and Van Ness Avenue, known as “The Hub.”

The city pitched recently that it could raise allowable heights on some of those towers by 10 to 15 percent to yield hundreds more units that would be set aside for low- and moderate-income residents near to key neighborhoods like the Mission, SoMa and the Tenderloin.

Credit: Cory Weinberg and Riley McDermid

Link: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2015/11/30-van-ness-80-million-related-california-housing.html

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